Q2 26 EPS Adjusted
$0.65
BEAT +11.45%
Est. $0.58
Q2 26 Revenue
$1.12B
BEAT +4.00%
Est. $1.08B
vs S&P Since Q2 26
-13.9%
TRAILING MARKET
DDOG -13.3% vs S&P +0.5%
Market Reaction
Did DDOG Beat Earnings? Q2 2026 Results
Datadog delivered a standout second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines and extending its consensus EPS beat streak to five consecutive quarters. The cloud monitoring company posted revenue of $1… Read more Datadog delivered a standout second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines and extending its consensus EPS beat streak to five consecutive quarters. The cloud monitoring company posted revenue of $1.12 billion, up 35.6% year over year and ahead of the $1.08 billion consensus by 4.00%, while adjusted non-GAAP EPS of $0.65 cleared the $0.58 estimate by 11.45%. The primary engine behind the outperformance was deepening platform adoption among enterprise customers, with the count of clients generating $100,000 or more in annual recurring revenue climbing 23% to roughly 4,720, a figure that underscores the competitive pressure rivals in the observability space are facing as AI workload monitoring demand intensifies. Non-GAAP operating income reached $257.03 million at a 23% margin, up from 20% a year ago, reflecting meaningful operating leverage. Looking ahead, Datadog raised its full-year 2026 revenue guidance to $4.45 billion to $4.47 billion and set non-GAAP EPS guidance of $2.50 to $2.54, signaling continued confidence in demand for its expanding AI-oriented platform capabilities.
Key Takeaways
- • 36% year-over-year revenue growth driven by customer adoption of AI-enabled solutions
- • 23% growth in $100K+ ARR customers to approximately 4,720
- • Non-GAAP operating margin expansion to 23% from 20% year-over-year
- • Free cash flow margin of 25% vs 20% in Q2 2025
DDOG Forward Guidance & Outlook
For Q3 2026, Datadog expects revenue between $1.135 billion and $1.145 billion, non-GAAP operating income between $260 million and $270 million, and non-GAAP net income per share between $0.63 and $0.65 on approximately 378 million weighted average diluted shares. For full year 2026, the company expects revenue between $4.45 billion and $4.47 billion, non-GAAP operating income between $1.01 billion and $1.03 billion, and non-GAAP net income per share between $2.50 and $2.54 on approximately 376 million weighted average diluted shares.
DDOG YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
“Datadog delivered a strong quarter, with 36% year-over-year revenue growth, $316 million in operating cash flow, and $279 million in free cash flow. Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions.”
— Olivier Pomel, Q2 2026 Earnings Press Release
DDOG Earnings Trends
DDOG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
DDOG EPS Trend
Earnings per share: estimate vs actual
DDOG Revenue Trend
Quarterly revenue: estimate vs actual
DDOG Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.58 | $0.65 | +11.45% | $1.12B | +4.00% |
| Q1 26 BEAT | $0.51 | $0.60 | +18.25% | $1.01B | +4.84% |
| Q4 25 BEAT FY | $0.55 | $0.59 | +6.33% | $953.2M | +3.81% |
| FY Full Year | $2.02 | $2.05 | +1.49% | $3.43B | +1.02% |
| Q3 25 BEAT | $0.46 | $0.55 | +20.38% | $885.7M | +3.92% |
| Q2 25 BEAT | $0.41 | $0.46 | +12.83% | $826.8M | +4.53% |
| Q1 25 BEAT | $0.42 | $0.46 | +8.44% | $761.6M | +2.71% |